Time: Sat May 31 06:37:10 1997
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Date: Sat, 31 May 1997 06:29:20 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: C-NEWS: Real Reform of American Politics (fwd)

<snip>
>
>Real Reform of American Politics
>
>	The burgeoning Clinton fund-raising scandals may provide the 
>impetus for Congress to finally pass a campaign finance reform bill.  
>The question is whether it will do anything to "clean up Washington."  
>Most likely, it won't.
>
>	The reason is there is so much at stake in the spending and 
>taxing decisions made by post- Great Society government that interest 
>groups feel they can't afford not to play the game.  Even if barriers 
>are erected to their current efforts at influence, because the stakes 
>are so high (the federal government will spend about $1.7 trillion this 
>year), lobbyists and groups will find alternative ways to pressure the 
>system.  At base, it is an economic imperative for them.
>
>	So is there any way to get all the money and self-interest out 
>of our elections and politics?  Yes, but we won't do it by trying to 
>outsmart the interest groups -- we can only remove their incentives to 
>be so involved in the process.
>
>	We do that first by drastically cutting the size and scope of 
>government in Washington.  If there is less of a prize to be gained from 
>the policy process, there will be fewer campaign dollars seeking to 
>influence government.  As columnist James Glassman observes, "Think of 
>campaign contributions as an investment -- and a fairly inexpensive one 
>-- toward securing those government benefits."  It is not hard to 
>imagine for example that without big campaign bucks channeled to both 
>Republicans and Democrats from favored groups, the Department of 
>Commerce and most of its programs might have been eliminated long ago.
>
>	Is big government really the primary cause of the explosion of 
>campaign contributions and the role of lobbying in Washington?  Consider 
>that there are 125 people working to influence government policy for 
>every member of the House and Senate.  In 1964, before enactment of 
>Lyndon Johnson's Great Society, there were 31.  In Washington today  
>there are almost twice as many law firms as churches.
>
>	More significant evidence however is the work of John Lott of 
>the University of Chicago, who has undertaken detailed statistical 
>analysis of federal and state politics and found a clear relationship 
>between bigger government and greater efforts to influence it.
>
>	Cutting Washington down to size will mean taxes will be much 
>lower.  But beyond drastically cutting the amount of spending and 
>taxing, our tax system needs to be radically reformed through a flat tax 
>that lowers income tax rates in exchange for ending deductions.
>
>	The economic virtues of lower tax rates are clear -- today's 
>high marginal rates are a disincentive for working and investing.  But 
>the combination of lowering rates and ending deductions will have a huge 
>political payoff as well -- the curtailing of interest group fighting 
>for special tax breaks.  These breaks along with big government have 
>kept income tax rates too high for too long.
>
>	Former Democratic Governor of California Jerry Brown, who is a 
>flat tax supporter, argues that fundamental tax reform would be an 
>assault on "the crooked Washington fund-raising machine that routinely 
>auctions off loopholes to the highest bidder."  How big a machine does 
>our current tax code create?  Professors Robert Hall and Alvin Rabushka 
> calculate the costs to the American economy of lobbyists and efforts to 
>influence the direction of the tax code at a staggering $50 billion per 
>year.  Fundamental tax reform, drastically lowering rates and getting 
>rid of special breaks, would break up the game.
>
>	In a system with low rates and no special breaks, the Washington 
>lobbying and PAC army will shrivel and that $50 billion will go towards 
>much more productive ends.  American firms -- be they in the timber 
>business or oil business or insurance business -- can focus on building 
>a better widget and creating new jobs, instead of buying a better tax 
>loop-hole.
>
>	Besides clamping down on special interest government, tax reform 
>will also mean more economic freedom for Americans.  As Dick Armey 
>argues, the great virtue of a flat tax "is that it is neutral.  It does 
>not seek to guide the economic decisions of free Americans."
>
>	Congress and the President may well agree to some type of 
>campaign finance reform.  If so, Senators and Representatives, along 
>with President Clinton will shower accolades on themselves for cleaning 
>up our political system.  But it will be an illusion.  When so much is 
>at stake, the special interests will find a way to funnel money and 
>their influence into campaigns and the governing of America.
>
>	Only by taking away the incentives for the influence seekers 
>will we see a true reform of the American political system.
>
>
>John Berthoud
>Vice President
>Alexis de Tocqueville Institution
>(The Alexis de Tocqueville Institution is a non-partisan public policy 
>research group in Arlington, Virginia).
>
>Note: this op-ed appeared in several newspapers around the country, 
>including The Indianapolis Star and The (Wheeling, WV) Intelligencer.
>-------
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>
>
>

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Paul Andrew, Mitchell, B.A., M.S.    : Counselor at Law, federal witness
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